TRAI’s Proposed Framework
On November 5, 2026, the Telecom Regulatory Authority of India (TRAI) suggested a new authorization process for Satellite Communication Network (SCN) providers under the Telecommunications Act, 2023. This recommendation is subject to approval by the Department of Telecommunications (DoT).
Key Features of the Proposed Authorization
The proposed authorization would allow eligible companies to establish and operate satellite networks within India. These networks would include gateways and necessary network equipment. Companies could qualify through possessing authorized satellite capacity, having a subsidiary relationship, or agreeing to operate gateways in India. Crucially, providers would not be required to own satellites, nor would they be permitted to sell services directly to consumers or obtain permission to launch or operate satellites.
Licence Details
The authorization would be valid for 20 years and could be renewed for an additional 20 years. The initial entry fee is set at ₹37.5 lakh, and a recurring licence fee of 8% of adjusted gross revenue (AGR) would apply. Telecom operators could deduct payments to SCN providers when calculating their own fee liability.
Spectrum Allocation
Spectrum assignment would be conducted administratively for a period of up to five years, with a potential two-year extension. The TRAI’s recommendation includes a reported annual minimum spectrum charge of ₹3,500 per MHz. However, the detailed recommendation indicates that the final pricing will be determined by the DoT, and a previous proposal of 4% of AGR is still under consideration.
Direct Smartphone Connectivity
TRAI’s proposal also allows satellites to connect directly to ordinary smartphones in areas without mobile towers. Operators can utilize existing spectrum without incurring additional charges, provided the same frequency channel is available across all 22 telecom circles. Data traffic originating from Indian users must pass through gateways located within India, preventing routing or copying abroad.
Gateway Operational Requirements
SCN providers would be required to enable real-time monitoring and lawful interception capabilities. Furthermore, gateways must be operational within 12 months of receiving approval.
Source: GK Today.
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